Acer Completes Gateway Share Purchase
The Taiwanese company announced in August a plan to buy U.S. PC vendor Gateway for around US$710 million through a tender offer for the company's shares. On Thursday, Acer announced that an investment subsidiary set up to buy Gateway stock had finished the tender offer, and would soon finalize the deal.
The companies will formally merge within the next few days, and the deal will be closed by Oct. 16, Acer said in a statement. Gateway's stock will cease to trade on the New York Stock Exchange by that date.
The Acer-Gateway deal, and a pending arrangement for Gateway to buy European PC vendor Packard Bell BV, will put the Taiwanese company in a position to challenge Hewlett-Packard Co. and Dell Inc. for U.S. market share, while blocking rival Lenovo Group Ltd. from gaining ground in Europe through its planned purchase of Packard Bell, analysts say.
Gateway will continue to operate under its own name as a subsidiary of Acer, and the company expects to expand its product offerings.
Acer said it was gratified by the enthusiasm in which Gateway employees and clients have reacted to the acquisition.
In a separate statement, Acer said it borrowed NT$19.8 billion (US$607.2 million) from Citibank, part of Citigroup Inc., for use in the Gateway purchase.